Goldman Goes All In on 'Secondary' Bet

Bank-Led Group to Pay About $1.5 Billion
For Portfolio of Private-Equity Investments

By

Peter Lattman

Updated Aug. 13, 2008 12:01 a.m. ET

Much of the financial world has become cautious on private-equity investments. Goldman Sachs Group Inc. is doubling down.

A Goldman Sachs-led group has agreed to pay about $1.5 billion for a portfolio of existing private-equity investments divested as part of the $101 billion carve-up of Dutch bank ABN Amro by Banco Santander SA, Royal Bank of Scotland Group PLC and Fortis NV.